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The automaker has blamed an earnings downgrade to US-imposed tariffs, while simultaneously urging the UK government for more proactive support.

The company, which builds its vehicles in factories across England and Wales, lowered its earnings forecast on Monday, representing the second such revision in the current year. It now anticipates deeper losses than the previously projected £110m shortfall.

Seeking Government Backing

Aston Martin expressed frustration with the British leadership, informing shareholders that while it has communicated with representatives from both the UK and US, it had productive talks directly with the American government but required more proactive support from British officials.

It urged British authorities to protect the interests of small-volume manufacturers like Aston Martin, which provide thousands of jobs and add value to local economies and the wider British car industry network.

Global Trade Effects

Trump has disrupted the worldwide markets with a tariff conflict this year, significantly affecting the car sector through the imposition of a 25 percent duty on April 3, on top of an previous 2.5 percent charge.

During May, the US president and Keir Starmer agreed to a agreement to limit tariffs on 100,000 British-made vehicles per year to 10 percent. This tariff level took effect on 30th June, aligning with the last day of the company's second financial quarter.

Trade Deal Concerns

Nonetheless, the manufacturer criticised the bilateral agreement, stating that the introduction of a American duty quota system adds further complexity and limits the company's ability to precisely predict financial performance for the current fiscal year-end and potentially quarterly from 2026 onwards.

Other Challenges

The carmaker also cited reduced sales partially because of increased potential for supply chain pressures, particularly following a recent digital attack at a leading British car producer.

UK automotive sector has been rattled this year by a cyber-attack on Jaguar Land Rover, which prompted a manufacturing halt.

Market Reaction

Shares in Aston Martin, listed on the LSE, fell by more than 11% as markets opened on Monday morning before partially rebounding to stand down 7%.

The group delivered 1,430 cars in its third quarter, falling short of earlier projections of being broadly similar to the 1,641 cars delivered in the equivalent quarter last year.

Future Plans

Decline in demand coincides with Aston Martin prepares to launch its Valhalla, a mid-engine supercar priced at approximately £743,000, which it expects will boost earnings. Deliveries of the car are scheduled to begin in the last quarter of its financial year, although a forecast of about 150 units in those three months was lower than previous expectations, reflecting technical setbacks.

The brand, well-known for its roles in the 007 movie series, has initiated a review of its upcoming expenditure and spending plans, which it indicated would probably result in reduced spending in R&D versus previous guidance of about £2bn between its 2025 and 2029 fiscal years.

Aston Martin also told investors that it does not anticipate to generate profitable cash generation for the latter six months of its present fiscal year.

The government was approached for a statement.